While it is now considered too late for hobbyists without expensive ASIC processors to start mining bitcoins , many of the alternative digital currencies are still well suited for mining on your home PC. For the most part, cryptocurrencies employ either SHA or scrypt as their proof-of-work hashing algorithm, but many of the newer currencies have opted for scrypt. Scrypt tends to be the more memory intensive of the two — however, home PCs with reasonably powerful graphics cards can still mine those cryptocurrencies quite effectively, as there are no dedicated ASICs to compete with — yet. This holds true, even if you have only a laptop with integrated graphics; though this may not prove terribly effective and is not a set-up we would recommend. Before you start mining, you will need a wallet to keep your hard-earned coins in see our guide to storing bitcoin. A good option is to head to the homepage of the currency you intend to mine and seek out the download link for the default wallet app.
How to Mine Litecoin - A Guide on Litecoin Mining and Other Altcoins
Not only does it involve financial outlay on the mining setup, but you should also understand the game enough to remain sufficiently competitive. The prolonged bear market has made it difficult for miners in The energy costs in many countries mean that the costs of running a rig can outweigh the profits available. This can be the case when mining Bitcoin , Litecoin , or any of the other cryptocurrencies. Before investing in any mining hardware, be aware of the risks. If the price of the coin you are mining goes down, you may end up paying more for the energy to run your mining rig than you will gain from the profits it generates. Additionally, you want to ensure that the profits you earn cover the costs of investing in your equipment.
How to Mine Litecoin and other Altcoins
Before we jump in, know that you can use a Litecoin mining calculator to try and estimate your possibility of making a profit. You can put in hash rate and estimated electricity costs to try to guess your earnings and profit. Bitmain has always been a trusted Bitcoin mining hardware manufacturer. Lately, however, the company has come under heat for adding a backdoor to their hardware.
First things first. If you've gotten those variables figured out, there are good guides available online and helpful forums for when search engines fail you. Use the links in the table below to skip to a section. Investing in cryptocurrencies and other Initial Coin Offerings "ICOs" is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or other ICOs.